Octopus Energy Group has raised €850 million ($1 billion) for its technology company, Kraken. The round is the first standalone investment into Kraken and values the business at €7.3 billion ($8.65 billion). This transaction establishes Kraken’s formal independence and demerger from Octopus.
The round was led by D1 Capital Partners, with participation from Fidelity International, Durable Capital Partners and Ontario Teachers’ Pension Plan Board, via its late-stage growth business Teachers’ Venture Growth. Existing Octopus Energy investors also participated.
Greg Jackson, Founder of Octopus Energy Group, said, “Kraken is in a class of its own, in terms of technology, capability, and scale. As an independent company with world-class backers and outstanding leadership, it will be free to grow even faster and is set to be a true UK-founded success story.
“Having incubated Kraken, Octopus is a powerhouse of innovation and technology, and will now have even more horsepower to deliver the transformation of energy globally. With over 10 thousand staff, 11 million customers, $10bn of generation under management, and businesses from EV leasing to heat pump design and manufacture, Octopus is set for even greater things over the coming years.”
According to the press release, Investors led by Octopus Capital are also injecting a further €271.7 million ($320 million) into Octopus for innovation and growth. Under the terms of the deal, Octopus Energy will retain a 13.7% stake in Kraken post-spinout.
Kraken is an end-to-end, AI-powered operating system for utilities. It claims that it supports 70+ million accounts globally through licensing agreements with major utilities.
The demerger enables Kraken to operate as a fully independent technology platform for utilities worldwide. It now operates as a separate company with a separate cap table, independent governance, and leadership.
Amir Orad, CEO of Kraken, said, “Becoming an independent company gives Kraken the focus and freedom to scale as a neutral, global operating system for utilities, with Octopus Energy remaining a key innovation partner and forward-thinking global customer.
“I’m excited to welcome our new investors, led by D1. With their backing, we can accelerate our impact on the energy transition, deepen partnerships with utilities worldwide, and help modernise the energy system at global scale – our goal being to positively impact a billion lives within a decade.”
In September, Kraken also reported that its contracted annual revenues exceeded €424.5 million ($500 million) in 2025.
Kraken is headquartered in London and New York, with regional centres in Paris, Tokyo and Melbourne. It works with utilities like EDF Energy, E.ON Next, Octopus Energy, Origin, Plenitude, Portsmouth Water, National Grid, and Tokyo Gas.
Octopus Energy is a global clean energy and technology business operating in 27 countries and the entire energy value chain. It operates a €8 billion (£7 billion) renewables portfolio, as well as EV leasing, heat pump, and solar businesses.
Read the orginal article: https://www.eu-startups.com/2025/12/octopus-energy-to-spin-out-ai-utility-platform-kraken-at-e7-3b-valuation-after-e850m-funding-round/
